,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #cdia  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,novemb] #ad1         
#bjac,mr4 ,mc,dermott introduc$ ! foll[+
 bill2 :i* 0 ref]r$ to ! ,committee on  
,ways & ,means1 & 9 addition to !       
,committee on ,education & ! ,work=ce1 =
 a p]iod to be subsequ5tly det]m9$ by ! 
,speak]1 9 ea* case = consid]ation ( su*
 provisions z fall )9 ! jurisdiction ( !
 committee conc]n$  ,a ,,bill  ,to am5d 
! ,int]nal ,rev5ue ,code ( #aihf to     
regulate & tax ,int]net gambl+1 & = o!r 
purposes4  #a4 ,%ort title2 am5dm5t (   
#aihf ,code  7a7 ,%ort ,title ,?is ,act 
may be cit$ z ! ,int]net ,gambl+        
,regulation & ,tax ,en=cem5t ,act (     
#bjac4  7b7 ,am5dm5t ( #aihf ,code      
,except z o!rwise expressly provid$1    
:5ev] 9 ?is ,act an am5dm5t is express$ 
9 t]ms ( an am5dm5t ( a section or o!r  
provision1 ! ref]5ce %all be consid]$ to
 be made to a section or o!r provision (
 ! ,int]nal ,rev5ue ,code ( #aihf4  #b4 
,tax on ,int]net gambl+  7a7 ,9 g5]al   

,*apt] #cf 7relat+ to c]ta9 o!r excise  
taxes7 is am5d$ by add+ at ! end !      
foll[+ new sub*apt]3  ,e ,int]net       
,gambl+  ,sec4 #ddia4 ,imposition (     
,int]net gambl+ lic5se tax4,sec4 #ddib4 
,record requirem5ts4,sec4 #ddic4        
,elective ,/ate & ,indian tribal        
gov]nm5t onl9e gambl+ tax4,sec4 #ddid4  
,regulations4  #ddia4 ,imposition (     
,int]net gambl+ lic5se tax  7a7 ,int]net
 gambl+ lic5see  7#a7 ,9 g5]al ,!re is  
h]eby impos$ a tax on ea* ,int]net      
gambl+ lic5see 9 an am\nt equal to #d   
p]c5t ( all funds deposit$ by cu/om]s   
mak+ deposits :ile locat$ )9 ! ,unit$   
,/ates dur+ ! prec$+ mon? into an acc\nt
 ma9ta9$ by t ,int]net gambl+ lic5see or
 any ag5t ( t lic5see t c be us$ = !    
purpose ( plac+ a bet or wag] z def9$ 9 
section #ecfb7a7 ( title #ca1 ,unit$    
,/ates ,code4  7#b7 ,p]sons liable = tax
 ,! tax impos$ by subsection 7a7 %all be
 ! direct & exclusive obligation ( !    
,int]net gambl+ op]ator & may n be      
d$uct$ f ! am\nts available z deposits  

to ! p]son plac+ a bet4 ,not)/&+ !      
prec$+ s5t5ce1 any p]son mak+ a deposit 
= ! purpose ( plac+ a bet or wag] ) a   
p]son :o is requir$ b has fail$ to obta9
 a lic5se pursuant to sub*apt] ,v (     
*apt] #ec ( title #ca1 ,unit$ ,/ates    
,code1 %all be liable = & pay ! tax "u  
?is sub*apt] on all su* deposits1 b su* 
liability %all n excuse any failure to  
pay ! tax on ! "p ( ! p]son :o is       
requir$ b has fail$ to obta9 su* lic5se4
 ,! p]son mak+ ! deposit %all n be      
liable = ! tax on deposits 9 cases (    
fraud4  7b7 ,unau?oriz$ bets or wag]s   
7#a7 ,9 g5]al ,!re is h]eby impos$ a tax
 on any p]son :o accepts a bet or wag] &
 :o is n au?oriz$ pursuant to section   
#echc7;b7 ( title #ca1 ,unit$ ,/ates    
,code1 to accept su* bet or wag]4  7#b7 
,am\nt ( tax ,! am\nt ( su* tax %all be 
equal to #ej p]c5t ( all funds deposit$ 
into an acc\nt t c be us$ = plac+ a bet 
or wag] )9 ! mean+ ( section #ecfb7a7 ( 
t title4  7c7 ,cr$its = returns ( funds 
7#a7 ,9 g5]al ,!re %all be all[$ z a    

cr$it aga9/ ! tax impos$ by ?is section 
an am\nt equal to ! sum ( ! foll[+ taxes
 :i* are paid on any funds return$ by or
 on behalf ( an ,int]net gambl+ lic5see 
to ! acc\nt ( a cu/om]3 7,a7 ,! tax     
impos$ by ?is section4  7,b7 ,any ,/ate 
or ,indian tribal ,int]net gambl+ tax   
impos$ "u section #ddic7;b74  7,c7 ,any 
tax impos$ on ov]seas ,int]net gambl+ "u
 section #ddic7;d74  7#b7 ,limitation ,!
 am\nt all[$ z a cr$it "u p>agraph 7#a7 
) respect to a cu/om] may n exce$ #ab   
p]c5t ( ! funds receiv$ 9 deposits f !  
cu/om]4  7d7 ,:5 due ,! tax impos$ by   
?is section %all be due at by ! end (   
ea* cal5d> mon? ) respect to deposits   
dur+ ! prec$+ mon?4  7e7 ,def9itions &  
special rules ,= purposes ( ?is         
sub*apt]-- 7#a7 ,int]net gambl+ lic5see 
,! t]m ,int]net gambl+ lic5see means a  
lic5see1 z def9$ 9 section #echb ( title
 #ca1 ,unit$ ,/ates ,code4  7#b7        
,deposits ,deposits made by or on behalf
 ( an ,int]net gambl+ lic5see ( ,int]net
 gambl+ w9n+s or returns ( funds by or  

on behalf ( an ,int]net gambl+ lic5see  
to ! acc\nt ( a cu/om] %all n be treat$ 
z a deposit = purposes ( ?is section4   
#ddib4 ,record requirem5ts ,ea* p]son   
liable = taxes "u ?is sub*apt]1 except =
 a p]son mak+ a deposit :o is liable =  
taxes pursuant to section #ddia7;a77#b71
 %all keep a daily record %[+ deposits  
7)9 ! mean+ ( ?is sub*apt]71 9 addition 
to all o!r records requir$ pursuant to  
section #fjja4  #ddic4 ,elective ,/ate &
 ,indian tribal gov]nm5t onl9e gambl+   
tax  7a7 ,9 g5]al  7#a7 ,paym5t ( ,/ate 
& ,indian tribal gov]nm5t tax ,on a     
mon?ly basis1 ea* ,int]net gambl+       
lic5see %all pay to ea* qualifi$ ,/ate &
 ea* qualifi$ ,indian tribal gov]nm5t an
 am\nt equal to ! mon?ly pro rata ,/ate 
& ,indian tribal gov]nm5t onl9e gambl+  
tax4  7#b7 ,mon?ly pro rata onl9e gambl+
 tax ,= purposes ( ?is section1 )       
respect to a qualifi$ ,/ate & a qualifi$
 ,indian tribal gov]nm5t = any cal5d>   
mon?1 ! mon?ly pro rata onl9e gambl+ tax
 is ! am\nt ( ! taxes describ$ 9        

subsection 7b7 receiv$ ) respect to su* 
cal5d> mon?4  7#c7 ,qualifi$ ,/ate2     
qualifi$ ,indian tribal gov]nm5t  7,a7  
,9 g5]al ,= purposes ( ?is section1 !   
t]ms qualifi$ ,/ate & qualifi$ ,indian  
tribal gov]nm5t mean a ,/ate or an      
,indian tribal gov]nm5t1 respectively1 =
 :i* an election to receive funds "u ?is
 section is 9 effect4 ,notice ( su*     
election %all be provid$ by ! ,gov]nor1 
pr9cipal *ief1 or o!r *ief executive    
(fic] 9 su* =m & mann] z ! ,secret>y may
 prescribe4  7,b7 ,/ate election n to   
affect tribal election ,an election by a
 ,/ate "u subp>agraph 7,a7 to receive   
funds "u ?is section %all n con/itute an
 election to be s includ$ on behalf (   
any ,indian tribe locat$ )9 or p>tially 
)9 ! geographic b\nd>ies ( su* ,/ate4   
7,c7 ,revocation ( ,/ate or ,tribal     
election  7i7 ,9 g5]al ,a ,/ate or      
,indian ,tribal gov]nm5t may revoke its 
election by notice provid$ by !         
,gov]nor1 pr9cipal *ief1 or o!r *ief    
executive (fic] & 9 su* =m & mann] z !  

,secret>y may prescribe4  7ii7 ,tim+ (  
revocation ,revocation ( /ate election  
%all take effect ! lat] ( #f mon?s aft] 
receipt by ! ,secret>y ( su* revocation1
 or on ,janu>y #a/ ( ! ye> foll[+       
receipt by ! ,secret>y ( su* revocation4
  7,d7 ,/ate ,! t]m ,/ate means any     
,/ate1 ! ,di/rict ( ,columbia1 or any   
commonweal?1 t]ritory or o!r possession 
( ! ,unit$ ,/ates4  7,e7 ,indian tribal 
gov]nm5t ,! t]m ,indian tribal gov]nm5t 
means ! gov]nm5t ( an ,indian tribe 7)9 
! mean+ ( section #d ( ! ,indian ,gam+  
,regulatory ,act74  7#d7 ,"t ( paym5ts  
,! paym5t made "u ?is subsection )      
respect to any cal5d> mon? %all be made 
n lat] ?an ! #aa? day ( ! succe$+ cal5d>
 mon?4  7#e7 ,li/ ( qualifi$ ,/ates &   
qualifi$ ,indian tribal gov]nm5ts ,!    
,secret>y %all ma9ta9 a curr5t li/ (    
qualifi$ ,/ates & qualifi$ ,indian      
tribal gov]nm5ts & %all publi% su* li/  
onl9e4  7b7 ,/ate & ,indian ,tribal     
,gov]nm5t ,onl9e ,gambl+ tax ,! ,/ate & 
,indian tribal gov]nm5t onl9e gambl+ tax

 %all be an am\nt equal to #h p]c5t (   
all deposit$ funds deposit$ by cu/om]s  
locat$ 9 ea* qualifi$ /ate or area      
subject to ! jurisdiction ( a qualifi$  
,indian tribal gov]nm5t at ! "t ( !     
deposit4  7c7 ,effect ( acceptance ( tax
 ,acceptance by a ,/ate or ,indian      
tribal gov]nm5t ( ! ,/ate & ,indian     
tribal gov]nm5t onl9e gambl+ tax %all   
relieve ,int]net gambl+ lic5sees f !    
obligation to pay any o!r fee or tax to 
! ,/ate or ,indian tribal gov]nm5t      
relat+ to its onl9e gambl+ s]vices1     
except =-- 7#a7 applicable ,/ate        
individual & corporate income taxes1 :i*
 %all be unaffect$ by ! election1 &     
7#b7 any fees associat$ ) an ,int]net   
gambl+ lic5see's *oice to rely on a     
,/ate or ,indian tribal regulatory body 
c]tification ( suitability 9 connection 
) a ,f$]al onl9e gambl+ lic5s+          
application4  7d7 ,ov]seas int]net      
gambl+ tax ,!re is h]eby impos$ a tax on
 ea* ,int]net gambl+ lic5see 9 an am\nt 
equal to #ab p]c5t ( all funds deposit$ 

by cu/om]s mak+ deposits :ile locat$ )\t
 ! ,unit$ ,/ates dur+ ! prec$+ mon? into
 an acc\nt ma9ta9$ by t ,int]net gambl+ 
lic5see or any ag5t ( t lic5see t c be  
us$ = ! purpose ( plac+ a bet or wag] z 
def9$ 9 section #ecfb7a7 ( title #ca1   
,unit$ ,/ates ,code4 ,deposit$ funds    
subject to ! ,/ate & ,indian tribal     
gov]nm5t ,int]net gambl+ tax "u ?is     
section %all n be tak5 into acc\nt =    
purposes ( ! prec$+ s5t5ce4  #ddid4     
,regulations ,! ,secret>y %all prescribe
 su* regulations z may be necess>y or   
appropriate to c>ry out ?is sub*apt]4  4
  7b7 ,cl]ical am5dm5t ,! table (       
sub*apt]s = *apt] #cf is am5d$ by add+  
at ! end ! foll[+ new item3  ,sub*apt]  
,e4 ,int]net ,gambl+4  4  7c7 ,effective
 date ,! am5dm5ts made by ?is section   
%all apply to bets or wag]s plac$ aft] !
 date ( ! enactm5t ( ?is ,act4  #c4     
,int]net ,gambl+ ,lic5see in=mation     
report+  7a7 ,9 g5]al ,subp>t ,a ( "p   
,,iii ( sub*apt] ,a ( *apt] #fa 7relat+ 
to in=mation conc]n+ p]sons subject to  

special provisions7 is am5d$ by add+ at 
! end ! foll[+ new section3  #fjej,x4   
,returns relat+ to ,int]net gambl+  7a7 
,requirem5t ,e p]son :o is an ,int]net  
gambl+ lic5see or :o o!rwise is engag$ 9
 ! bus9ess ( accept+ any bet or wag] )9 
! mean+ ( section #echb7a7 ( title #ca1 
,unit$ ,/ates ,code1 dur+ a taxable ye> 
%all furni%1 at su* "t & 9 su* mann] z !
 ,secret>y %all by regulations          
prescribe1 ! in=mation describ$ 9       
subsection 7b71 & su* p]son %all ma9ta9 
79 ! location1 9 ! mann]1 & to ! ext5t  
prescrib$ 9 regulations7 su* records z  
may be appropriate to ! in=mation       
describ$ 9 subsection 7b74  7b7 ,requir$
 in=mation ,= purposes ( subsection 7a71
 ! in=mation describ$ is set =? bel[1   
:i* in=mation may be modifi$ z          
appropriate by ! ,secret>y ?r\gh        
regulation-- 7#a7 ! "n1 address1 & ,,t9 
( ! ,int]net gambl+ lic5see or o!r p]son
 engag$ 9 ! bus9ess ( accept+ any bet or
 wag]1  7#b7 ! "n1 address1 & ,,t9 ( ea*
 p]son plac+ a bet or wag] ) ! ,int]net 

gambl+ lic5see or o!r p]son engag$ 9 !  
bus9ess ( accept+ any bet or wag] dur+ !
 cal5d> ye>1  7#c7 ! gross w9n+s1 gross 
wag]s1 & gross losses = ! cal5d> ye> (  
ea* p]son plac+ a bet or wag] ) !       
,int]net gambl+ lic5see or o!r p]son    
engag$ 9 ! bus9ess ( accept+ any bet or 
wag] dur+ ! ye>1  7#d7 ! net ,int]net   
gambl+ w9n+s = ea* su* p]son = ! cal5d> 
ye>1  7#e7 ! am\nt ( tax )held ) respect
 to ea* su* p]son = ! cal5d> ye>1  7#f7 
beg9n+ & end-(-ye> acc\nt balances = ea*
 su* p]son = ! cal5d> ye>1 &  7#g7      
am\nts deposit$ & )drawn by ea* su*     
p]son dur+ ! cal5d> ye>4  7c7 ,/atem5t  
,to be furni%$ to p]sons ) respect to   
:om in=mation is requir$ ,e p]son       
requir$ to make a return "u subsection  
7a7 %all furni% to ea* p]son ^: "n is   
requir$ to be set =? 9 su* return by    
reason ( plac+ a bet or wag] a writt5   
/atem5t %[+-- 7#a7 ! "n1 address1 &     
phone numb] ( ! in=mation contact ( !   
p]son requir$ to make su* return1 &     
7#b7 ! in=mation requir$ to be %[n on   

su* return ) respect to ea* p]son ^: "n 
is requir$ to be set =? 9 su* return4   
,! writt5 /atem5t requir$ "u ! prec$+   
s5t5ce %all be furni%$ to ! p]son on or 
be=e ,janu>y #ca ( ! ye> foll[+ ! cal5d>
 ye> = :i* ! return "u subsection 7a7 0 
requir$ to be made4  7d7 ,def9itions    
7#a7 ,int]net gambl+ lic5see ,! t]m     
,int]net gambl+ lic5see has ! mean+ giv5
 su* t]m by section #ddia7;d77#a74  7#b7
 ,net int]net gambl+ w9n+s ,! t]m net   
,int]net gambl+ w9n+s means gross w9n+s 
f wag]s plac$ ov] ! ,int]net ) a p]son  
requir$ to be lic5s$ "u section #echb ( 
*apt] #ec ( title #ca1 ,unit$ ,/ates    
,code1 less ! am\nts wag]$4  7#c7       
,int]net2 wag] ,! t]ms ,int]net & wag]  
%all h ! respective mean+s giv5 su* t]ms
 by section #ecfb ( *apt] #ec ( title   
#ca1 ,unit$ ,/ates ,code4  4  7b7 ,!    
table ( sections = subp>t ,b ( "p ,,iii 
( sub*apt] ,a ( *apt] #fa is am5d$ by   
ins]t+ aft] ! item relat+ to section    
#fjej,w ! foll[+ new item3  ,sec4       
#fjej,x4 ,returns relat+ to ,int]net    

gambl+4  4  #d4 ,)hold+ f c]ta9 gambl+  
w9n+s  7a7 ,net int]net gambl+ w9n+s    
,p>agraph 7#c7 ( section #cdjf7;b7      
7relat+ to o!r reportable paym5ts =     
purposes ( backup )hold+7 is am5d$--    
7#a7 by /rik+ or 9 subp>agraph 7,e72    
7#b7 by /rik+ 4 & ins]t+ 1 or at ! end (
 subp>agraph 7,f72 &  7#c7 by add+ at ! 
end !re( ! foll[+ new subp>agraph3  7,g7
 section #fjej,x7b77#d7 7relat+ to net  
,int]net gambl+ w9n+s74  4  7b7         
,effective date ,! am5dm5t made by ?is  
section %all apply to bets or wag]s     
plac$ aft] ! date ( ! enactm5t ( ?is    
,act4  #e4 ,)hold+ ( tax on nonresid5t  
ali5s  7a7 ,tax on nonresid5t ali5      
individuals ,p>agraph 7#a7 ( section    
#hga7;a7 7relat+ to income n connect$ ) 
,unit$ ,/ates bus9ess7 is am5d$-- 7#a7  
by /rik+ & at ! end ( subp>agraph 7,c71 
7#b7 by ins]t+ & at ! end ( subp>agraph 
7,d71 &  7#c7 by ins]t+ aft] subp>agraph
 7,d7 ! foll[+ new subp>agraph3  7,e7 ! 
gross am\nt ( w9n+s f ea* wag] plac$ ov]
 ! ,int]net ) a p]son requir$ to be     

lic5s$ "u section #echb ( *apt] #ec (   
title #ca1 ,unit$ ,/ates ,code 7z su*   
t]ms are def9$ 9 section                
#fjej,x7d77#b771  4  7b7 ,exemption =   
c]ta9 gambl+ w9n+s ,section #hga7;j7    
7relat+ to exemption = c]ta9 gambl+     
w9n+s7 is am5d$ by ins]t+ be=e ! p]iod  
at ! end ! foll[+3 or to any bets or    
wag]s plac$ ov] ! ,int]net 7z su* t]ms  
are def9$ 9 section #fjej,x7d77#b774    
7c7 ,)hold+ ( tax on nonresid5t ali5    
individuals ,! fir/ s5t5ce ( subsection 
7b7 ( section #adda 7relat+ to )hold+ ( 
tax on nonresid5t ali5s7 is am5d$ by    
ins]t+ aft] ga9s subject to tax "u      
section #hga7;a77#a77;,d71 ! foll[+3 !  
gross am\nt ( w9n+s f wag]s plac$ ov] ! 
,int]net describ$ 9 section             
#hga7;a77#a77;,e714  7d7 ,s\rce (       
int]net gambl+ w9n+s ,subsection 7a7 (  
section #hfa is am5d+ by ins]t+ at ! end
 !re( ! foll[+ new p>agraph3  7#aj7     
,int]net gambl+ w9n+s ,any ,int]net     
gambl+ w9n+s receiv$ f an ,int]net      
gambl+ lic5see 7z def9$ by section      

#ddia7;d77#a774  4  7e7 ,effective date 
,! am5dm5ts made by ?is section %all    
apply to bets or wag]s plac$ aft] ! date
 ( ! enactm5t ( ?is ,act4  #f4          
,t]ritorial ext5t  7a7 ,9 g5]al         
,p>agraph 7#b7 ( section #ddjd is am5d$ 
to read z foll[s3  7#b7 plac$ )9 !      
,unit$ ,/ates1 or any ,commonweal?1     
t]ritory1 or possession !re(1 by a p]son
 :o is a ,unit$ ,/ates citiz5 or        
resid5t4  4  7b7 ,effective date ,!     
am5dm5t made by subsection 7a7 %all     
apply to wag]s made aft] ,decemb] #ca1  
#bjab4  #g4 ,=eign lic5sees subject to  
,unit$ ,/ates ,f$]al income tax  7a7    
,nonresid5t ali5 individuals ,section   
#hgb is am5d$ by ins]t+ aft] subsection 
7b7 ! foll[+ new subsection3  7c7       
,income e>n$ by nonresid5t ali5         
individuals op]at+ int]net gambl+       
facilities  7#a7 ,treatm5t z ,unit$     
,/ates trade or bus9ess ,= purposes (   
?is title1 a nonresid5t ali5 individual 
:o is a lic5see or op]ates an ,int]net  
gambl+ facility = :i* a lic5se is       

requir$ "u section #ajc ( ! ,int]net    
,gambl+ ,regulation & ,en=cem5t ,act (  
#bjac at any "t dur+ a taxable ye> %all 
be deem$ to be engag$ 9 ! conduct ( a   
trade or bus9ess )9 ! ,unit$ ,/ates dur+
 ! taxable ye>4  7#b7 ,treatm5t ( gross 
income z effectively connect$ income ,= 
purposes ( ?is title1 all gross income  
relat$ to dome/ic wag]s t are plac$ ov] 
! ,int]net %all be deem$ to be          
effectively connect$ ) ! lic5see's trade
 or bus9ess )9 ! ,unit$ ,/ates4  7#c7   
,treatm5t ( gross income z attributable 
to p]man5t e/abli%m5t ,= purposes ( any 
applicable ,unit$ ,/ates income tax     
treaty1 a nonresid5t ali5 individual :o 
is a lic5see or op]ates an ,int]net     
gambl+ facility = :i* a lic5se is       
requir$ "u section #ajc ( ! ,int]net    
,gambl+ ,regulation & ,en=cem5t ,act (  
#bjac at any "t dur+ a taxable ye> %all 
be deem$ to h a p]man5t e/abli%m5t      
locat$ 9 ! ,unit$ ,/ates1 & all gross   
income aris+ f dome/ic wag]s t are plac$
 ov] ! ,int]net %all be treat$ z        

attributable to ! p]man5t e/abli%m5t (  
su* nonresid5t ali5 individual4  7#d7   
,def9itions ,= purposes ( ?is           
subsection-- 7,a7 ,dome/ic wag] ,! t]m  
dome/ic wag] means a wag] plac$ by a    
p]son locat$ 9 ! ,unit$ ,/ates4  7,b7   
,wag] ,! t]m wag] has ! mean+ giv5 ! t]m
 bet or wag] 9 section #ajb7b7 ( !      
,int]net ,gambl+ ,regulation & ,en=cem5t
 ,act ( #bjac4  7,c7 ,int]net ,! t]m    
,int]net has ! mean+ giv5 9 section     
#ecfb7e7 ( title #ca1 ,unit$ ,/ates     
,code4  4  7b7 ,=eign corporations      
,section #hhb is am5d$ by-- 7#a7        
r$esignat+ subsections 7e7 & 7f7 z      
subsections 7f7 & 7g71 respectively1 &  
7#b7 by ins]t+ aft] subsection 7d7 !    
foll[+3  7e7 ,income e>n$ by =eign      
corporations op]at+ int]net gambl+      
facilities  7#a7 ,treatm5t z ,unit$     
,/ates trade or bus9ess ,= purposes (   
?is title1 a =eign corporation t is a   
lic5see or op]ates an ,int]net gambl+   
facility = :i* a lic5se is requir$ "u   
section #ajc ( ! ,int]net ,gambl+       

,regulation & ,en=cem5t ,act ( #bjac at 
any "t dur+ a taxable ye> %all be deem$ 
to be engag$ 9 ! conduct ( a trade or   
bus9ess )9 ! ,unit$ ,/ates dur+ !       
taxable ye>4  7#b7 ,treatm5t ( gross    
income z effectively connect$ income ,= 
purposes ( ?is title1 all gross income  
relat$ to dome/ic wag]s t are plac$ ov] 
! ,int]net %all be deem$ to be          
effectively connect$ ) ! lic5see's trade
 or bus9ess )9 ! ,unit$ ,/ates4  7#c7   
,treatm5t ( gross income z attributable 
to p]man5t e/abli%m5t ,= purposes ( any 
applicable ,unit$ ,/ates income tax     
treaty1 a =eign corporation t is a      
lic5see or op]ates an ,int]net gambl+   
facility = :i* a lic5se is requir$ "u   
section #ajc ( ! ,int]net ,gambl+       
,regulation & ,en=cem5t ,act ( #bjac at 
any "t dur+ a taxable ye> %all be deem$ 
to h a p]man5t e/abli%m5t locat$ 9 !    
,unit$ ,/ates1 & all gross income aris+ 
f dome/ic wag]s t are plac$ ov] !       
,int]net %all be treat$ z attributable  
to ! p]man5t e/abli%m5t ( su* =eign     

corporation4  7#d7 ,def9itions  7,a7    
,dome/ic wag] ,! t]m dome/ic wag] means 
a wag] plac$ by a p]son locat$ 9 !      
,unit$ ,/ates4  7,b7 ,wag] ,! t]m wag]  
has ! mean+ giv5 ! t]m bet or wag] 9    
section #ajb7b7 ( ! ,int]net ,gambl+    
,regulation & ,en=cem5t ,act ( #bjac4   
7,c7 ,int]net ,! t]m ,int]net has !     
mean+ giv5 9 section #ecfb7e7 ( title   
#ca1 ,unit$ ,/ates ,code4  4  7c7       
,effective date ,! am5dm5t made by ?is  
section %all apply to paym5ts made aft] 
! date ( ! enactm5t ( ?is ,act4  #h4    
,am]ican ,h]itage ,program  7a7         
,implem5tation ( program ,f funds       
appropriat$ to ! ,am]ican ,h]itage      
,block ,grant ,fund = a fiscal ye>1 !   
,secret>y ( ! ,treasury %all make grants
 to eligible ,/ates to c>ry out an      
,am]ican ,h]itage ,program ?r\gh ,/ate  
arts ag5cies4  7b7 ,allotm5t ( funds    
,funds allott$ = a fiscal ye> %all be   
allott$ among eligible ,/ates 9 ! same  
proportion z funds are allott$ among !  
,/ates "u section #e7;g77#c7 ( !        

,national ,f\ndation on ! ,arts & !     
,humanities ,act ( #aife 7#bj ,u4,s4,c4 
#ied7;g77#c774  7c7 ,eligibility ,to    
receive grants ,to be eligible to       
receive a grant "u subsection 7a7 = a   
fiscal ye>1 a ,/ate %all submit to !    
,secret>y an application 9 su* =m1 &    
conta9+ su* in=mation & assurances1 z ! 
,secret>y may require by rule1 includ+  
assurances t-- 7#a7 n m ?an #hj p]c5t ( 
! co/ ( any qualifi$ activity c>ri$ out 
"u ?is section %all be paid ) su* grant1
 &  7#b7 n m t #bj p]c5t ( su* grant may
 be exp5d$ = adm9i/rative co/s4  7d7    
,def9itions ,= purposes ( ?is section-- 
7#a7 ! t]m ,am]ican ,h]itage ,program   
means a program c>ri$ out by a ,/ate t  
provides qualifi$ activities directly1  
or by contract ) nonpr(it organizations 
7includ+ community-bas$ organizations7  
or units ( local gov]nm5t1 = all ! p &  
communities 9 ! ,/ate1  7#b7 ! t]m      
,secret>y means ! ,secret>y ( !         
,treasury1  7#c7 ! t]m ,/ate has ! mean+
 giv5 su* t]m 9 section #d ( ! ,national

 ,f\ndation on ! ,arts & ! ,humanities  
,act ( #aife 7#bj ,u4,s4,c4 #iec71  7#d7
 ! t]m ,/ate arts ag5cy has ! same mean+
 giv5 su* t]m z us$ 9 ! ,national       
,f\ndation on ! ,arts & ! ,humanities   
,act ( #aife 7#bj ,u4,s4,c4 #iea et     
seq471 &  7#e7 ! t]m qualifi$ activities
 means activities t develop projects1   
productions1 work%ops1 or programs t w  
enc\rage public k1 education1 und]/&+1 &
 appreciation ( ,am]ican h]itage & !    
arts4  7e7 ,am]ican ,h]itage ,block     
,grant ,fund  7#a7 ,e/abli%m5t ,!re is  
e/abli%$ 9 ! ,treasury ( ! ,unit$ ,/ates
 a tru/ fund to be kn[n z ! ,am]ican    
,h]itage ,block ,grant ,fund1 consi/+ ( 
su* am\nts z may be appropriat$ or      
cr$it$ to ! ,am]ican ,h]itage ,block    
,grant ,fund z provid$ 9 ?is subsection4
  7#b7 ,transf] to ,fund ,!re are       
appropriat$ to ! ,am]ican ,h]itage      
,block ,grant ,fund am\nts equal to 4#e 
p]c5t ( ! taxes receiv$ by ! ,treasury  
aft] ,decemb] #ca1 #bjab1 t ! ,secret>y 
det]m9es are attributable to ,int]net   

gambl+4  7#c7 ,me?od ( transf] ,! am\nts
 appropriat$ by p>agraph 7#a7 %all be   
transf]r$ f "t to "t f ! g5]al fund ( ! 
,treasury4 ,su* am\nts %all be det]m9$  
on ! basis ( e/imates by ! ,secret>y ( !
 taxes1 specifi$ 9 p>agraph 7#a71 paid  
to or deposit$ into ! ,treasury4 ,prop] 
adju/m5ts %all be made 9 am\nts         
subsequ5tly transf]r$ to ! ext5t prior  
e/imates are 9 excess ( or are less ?an 
! taxes specifi$ 9 p>agraph 7#a74  7#d7 
,exp5ditures f ,am]ican ,h]itage ,block 
,grant ,fund ,am\nts 9 ! ,am]ican       
,h]itage ,block ,grant ,fund %all be    
available1 z provid$ by appropriation   
,acts1 = mak+ exp5ditures to c>ry out   
subsection 7a74  #i4 ,block grants to   
,/ates = transitional assi/ance ,!      
,social ,security ,act is am5d$ by add+ 
at ! end ! foll[+ new title3  ,,xxii    
,block grants to ,/ates = transitional  
assi/ance  #bbja4 ,transitional         
,assi/ance ,tru/ ,fund  7a7 ,creation ( 
tru/ fund ,!re is e/abli%$ 9 ! ,treasury
 ( ! ,unit$ ,/ates a tru/ fund to be    

kn[n z ! ,transitional ,assi/ance ,tru/ 
,fund1 consi/+ ( su* am\nts z may be    
appropriat$ or cr$it$ to ! ,transitional
 ,assi/ance ,tru/ ,fund z provid$ 9 ?is 
section4  7b7 ,transf] to ,transitional 
,assi/ance ,tru/ ,fund ( am\nts         
equival5t to c]ta9 taxes  7#a7 ,9 g5]al 
,!re are h]eby appropriat$ to !         
,transitional ,assi/ance ,tru/ ,fund1   
out ( any money 9 ! ,treasury n o!rwise 
appropriat$1 am\nts equival5t to #be    
p]c5t ( ! taxes receiv$ 9 ! ,treasury   
aft] ,decemb] #ca1 #bjab1 t ! ,secret>y 
( ! ,treasury det]m9es are attributable 
to ,int]net gambl+4  7#b7 ,me?od (      
transf] ,! am\nts appropriat$ by        
p>agraph 7#a7 %all be transf]r$ f "t to 
"t f ! g5]al fund 9 ! ,treasury to !    
,transitional ,assi/ance ,tru/ ,fund4   
,su* am\nts %all be det]m9$ on ! basis (
 e/imates by ! ,secret>y ( ! ,treasury (
 ! taxes1 specifi$ 9 p>agraph 7#a7 ( ?is
 subsection1 paid to or deposit$ into ! 
,treasury4 ,prop] adju/m5ts %all be made
 9 am\nts subsequ5tly transf]r$ to !    

ext5t prior e/imates 7 9 excess ( or 7  
less ?an ! taxes specifi$ 9 p>agraph    
7#a7 ( ?is subsection4  7c7 ,exp5ditures
 f ,transitional ,assi/ance ,tru/ ,fund 
,am\nts 9 ! ,transitional ,assi/ance    
,tru/ ,fund %all be available1 z provid$
 by appropriation ,acts1 = mak+         
exp5ditures to c>ry out section #bbjb4  
#bbjb4 ,transitional assi/ance grant    
program  7a7 ,9 g5]al ,ea* ,/ate %all be
 entitl$ to a paym5t "u ?is section =   
ea* fiscal ye> 9 an am\nt equal to its  
allotm5t = su* fiscal ye>1 to be us$ by 
su* ,/ate to c>ry out ! ,/ate's plan =  
transitional assi/ance describ$ 9       
subsection 7c71 subject to ! requirem5ts
 ( ?is section4  7b7 ,plan approval     
requir$ ,no ,/ate may receive a paym5t  
"u ?is section unless ! ,/ate submits ! 
,/ate's plan = transitional assi/ance   
describ$ 9 subsection 7c7 to ! ,secret>y
 & ! ,secret>y approves su* plan4  7c7  
,/ate plan = transitional assi/ance ,a  
,/ate plan = transitional assi/ance is  
describ$ by ?is subsection if ! plan--  

7#a7 provides = exp&$ education         
opportunities = individuals :o are1 or 7
 =m]ly1 9 fo/] c>e1 includ+ /reaml9+ &  
coord9at+ education f9anc+ opportunities
 & provid+ c\nsel+ & assi/ance to su*   
individuals = ! purpose ( ensur+        
completion ( _! academic goals2  7#b7   
provides = job tra9+ opportunities =    
individuals :o are1 or 7 =m]ly1 9 fo/]  
c>e2  7#c7 provides1 prim>ily ?r\gh     
exp&+ access to & inve/m5t 9 community  
colleges1 = exp&$ po/-second>y education
 & job tra9+ opportunities t lead to a  
c]tificate1 = individuals :o are work+  
91 or _h work$ 91 decl9+ sectors ( !    
economy1 z def9$ by ! ,secret>y1 & :o   
want to pursue a new c>e] 9 a sector ( !
 economy ) ! pot5tial = high wages &    
high gr[?1 z def9$ by ! ,secret>y2 &    
7#d7 provides a subsidy = ! use ( public
 transportation by-- 7,a7 individuals   
qualify+ = b5efits or s]vices "u title  
,,xx1 includ+ ! ,f$]al-,/ate            
,unemploym5t ,insurance ,program2 &     
7,b7 individuals p>ticipat+ 9 programs  

"u ! ,work=ce ,inve/m5t ,act4  7d7      
,allotm5t ,! allotm5t = a fiscal ye> = a
 ,/ate receiv+ an allotm5t = su* fiscal 
ye> %all be an am\nt equal to-- 7#a7 !  
am\nt appropriat$ = su* fiscal ye> "u   
subsection 7f71 multipli$ by  7#b7 !    
ratio by :i* ! population ( ! ,/ate be>s
 to ! population ( all ! ,/ates receiv+ 
an allotm5t = su* fiscal ye> z det]m9$  
by ! ,secret>y 7on ! basis ( ! mo/ rec5t
 data available f ! ,dep>tm5t (         
,comm]ce74  7e7 ,def9itions ,= purposes 
( ?is section3 7#a7 ,9 fo/] c>e ,! t]m 9
 fo/] c>e means1 ) respect to an        
individual1 an individual :o is "u ! c>e
 & placem5t responsibility ( ! ,/ate    
ag5cy responsible = adm9i/]+ a plan1 9  
connection ) su* individual1 "u "p ,b or
 "p ,e ( title ,,iv4  7#b7 ,secret>y ,! 
t]m ,secret>y means ! ,secret>y ( ,heal?
 & ,human ,s]vices4  7#c7 ,/ate ,! t]m  
,/ate means ! #ej ,/ates ( ! ,unit$     
,/ates1 ! ,di/rict ( ,columbia1 !       
,commonweal? ( ,pu]to ,rico1 ! ,unit$   
,/ates ,virg9 ,isl&s1 ,guam1 ,am]ican   

,samoa1 & ! ,nor!rn ,m>iana ,isl&s4  7f7
 ,au?orization ( appropriations ,!re are
 au?oriz$ to be appropriat$ = ea* fiscal
 ye> to ! ,secret>y ! am\nt deposit$    
into ! ,transitional ,assi/ance ,tru/   
,fund pursuant to section #bbja to c>ry 
out ?is section4  4